Latest guidance on the use of checking accounts opened at State Bank of Vietnam

Latest guidance on the use of checking accounts opened at State Bank of Vietnam (Image from the Internet)

Latest regulations on entities eligible to open checking accounts at State Bank of Vietnam

Article 7 of Circular 17/2024/TT-NHNN stipulates the entities eligible to open checking accounts at State Bank of Vietnam as follows:

- The State Bank of Vietnam's Transaction Office opens checking accounts for the following organizations:

+ Credit institutions (head office);

+ Branches of foreign banks in Vietnam;

+ Central State Treasury;

+ Other organizations as stipulated in Clause 2 of Article 13 of Decree 52/2024/ND-CP, including:

++  Central  banks  of  other  countries,

++  Foreign  banks,

++  International  monetary  organizations,

++  International  banks  according  to  international  treaties  and  agreements  that  Vietnam  is  a  member.  In  cases  where  Vietnam  is  not  yet  a  member,  the  opening  of  payment  accounts  is  implemented  according  to  the  decision  of  the  Prime  Minister.

- The State Bank of Vietnam branches in provinces and centrally run cities (hereinafter referred to as the State Bank branches) open checking accounts for the Provincial and District State Treasuries, credit institutions, and branches of foreign banks in their respective areas.

Latest guidance on the use of checking accounts opened at State Bank of Vietnam

Article 9 of Circular 17/2024/TT-NHNN guides the use of checking accounts opened at State Bank of Vietnam as follows:

- checking accounts opened at the State Bank of Vietnam are used for depositing, withdrawing cash, issuing checks, accounting, tracking, and executing payment orders through payment systems organized and operated by the State Bank, individual payments through the checking account, and other payment services provided by the State Bank.

- checking accounts of credit institutions and branches of foreign banks opened at the State Bank of Vietnam's Transaction Office are used to execute payment transactions when participating in open market operations, trading transferable instruments, Government bonds, Treasury bills, State Bank bills, and other activities as stipulated by law.

- The State Bank of Vietnam's Transaction Office and branches have the following rights and responsibilities:

+ Proactively debit the customer's checking account in the following cases:

++  Collect  due,  overdue  debts,  interest,  and  fees  arising  during  the  management  of  payment  accounts  and  provision  of  payment  services  as  stipulated  by  the  State  Bank;

++  Adjust  misposted  items,  accounting  errors,  or  items  that  do  not  match  the  nature  of  the  transactions  stipulated  by  law;

++  When  discovering  an  erroneous  credit  entry  to  the  customer's  payment  account  or  upon  request  for  cancellation/return  of  the  credit  transfer  order  by  the  payment  service  provider  for  the  transferring  party  when  errors  are  detected  compared  to  the  payer's  order;

++  As  required  in  writing  by  competent  authorities  for  the  enforcement  of  administrative  penalty  decisions,  enforcement  of  judgments,  tax  collection,  or  other  payment  obligations  as  stipulated  by  law.

+ Refuse to execute the account holder's payment orders in the following cases:

++  The  payment  order  is  not  legal  or  valid;

++  The  account  holder  does  not  fulfill  the  required  payment  procedures,  or  the  payment  order  does  not  match  the  registered  elements  in  the  account  opening  dossier  at  the  State  Bank;

++  The  payment  account  lacks  sufficient  balance;

++  Upon  written  request  by  a  competent  authority  as  stipulated  by  law.

+ Store and promptly update full documentation, information, and data in the account opening dossier, including signature samples, seal samples (if any) of the account-opening organization for inspection and comparison during account use;

+ Provide information on payment transactions and account balances to the account-opening organizations at the State Bank for inspection and comparison.

- The State Treasury, credit institutions, and branches of foreign banks opening checking accounts at the State Bank have the following rights and responsibilities:

+ Use the balance on their checking accounts to execute legal and valid payment orders;

+ Choose and use payment instruments, services, and conveniences provided by the State Bank;

+ Request the State Bank's Transaction Office and branches where the checking accounts are opened to execute legal and valid payment orders and provide information on payment transactions and account balances.

+ Provide full, accurate, and timely documents, information, and data in the account opening dossier and other information as required by the State Bank's Transaction Office and branches where the checking accounts are opened;

+ The State Treasury, credit institutions, and branches of foreign banks shall send notifications on changes to checking account information to the State Bank's Transaction Office and branches where the checking accounts are opened as per Appendix No. 01 issued with Circular 17/2024/TT-NHNN;

	Appendix No. 01

+ Be liable for any risks arising from providing, updating information that is not full, accurate, and timely, and any damages caused by their own errors.

To Quoc Trinh

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